New Zealand

Tags

HP making NZ job cuts?

Hewlett-Packard is rumoured to have begun laying off staff in New Zealand, according to IT website Computer World.

The computer manufacturer announced plans to cut 27,000 jobs, equating to 8% of its workforce, over the next 18 months in May this year, and is believed to have begun the process in New Zealand with Computer world reporting six sales staff have been made redundant locally.

HP are alleged to have offering redundancy to an unspecificed number of others, including long-serving employees with around 35 job losses expected in the coming weeks.

The news follows the company losses of US$8.9bn last week, showing a decline in revenue by 5%, falling to $29.7bn year-over-year.

The setback and subsequent job losses has not surprised the industry however, with the company previously disclosing plans to take an $8bn charge to reflect the diminishing value of Electronic Data Systems, the technology consulting service it paid $13bn for in 2008.

"HP is still in the early stages of a multi-year turnaround, and we're making decent progress despite the headwinds," said Meg Whitman last week, HP president and CEO.

"During the quarter we took important steps to focus on strategic priorities, manage costs, drive needed organisational change, and improve the balance sheet. We continue to deliver on what we say we will do."

Hewlett-Packard did not make a statement, refusing to comment on speculation.